College credits

The American Opportunity credit can be worth up to $2,500 for each qualifying student and is available for the first four years of vocational school or college. The Lifetime Learning credit can be worth up to $2,000 per year for additional schooling. You can claim an American Opportunity credit for qualifying expenses of each qualifying student (including yourself, your spouse or your dependent child). For example, having three children in college at the same time could earn you $7,500 worth of credits. However, only one Lifetime Learning credit can be claimed each year, for a maximum credit of $2,000 per tax return. The right to claim the American Opportunity credit disappears as adjusted gross income rises from $80,000 to $90,000 for a single taxpayer ($160,000 to $180,000 on a joint return). The right to claim the Lifetime Learning credit disappears as adjusted gross income rises from $50,000 to $60,000 for a single taxpayer ($100,000 to $120,000 on a joint return).